31 August 2012 21:28 [Source: ICIS news]
Correction: In the ICIS story headlined “US PPG Industries seeks $35/dst caustic soda increase” dated 31 August 2012, please read in the seventh paragraph … at $500-570/dst … instead of … at $500-700/dst .… A corrected story follows.
HOUSTON (ICIS)--PPG Industries is seeking $35/dst (dry short ton) (€25/dry metric tonne (dmt) increase for all grades of caustic soda, effective immediately or as contracts allow, the US chlor-alkali producer said on Friday.
In a letter to customers, PPG cited constricted supply as demand was expected to decrease in the coming months for chlorine, a co-derivative in the electrolysis process that produces caustic soda.
Also, “The US supply has been restricted by unplanned shutdowns coupled with a number of planned outages scheduled in the coming months,” PPG said in the letter.
PPG said global demand for caustic soda was outpacing supply as a result of low operating rates, especially in North America, creating a “global supply/demand imbalance”.
PPG’s announcement followed one made earlier on Friday by Occidental Chemical of an increase of $70/dst for all grades of caustic soda, also effective immediately or as contracts allow.
They came after two similar announcements made the week before by Dow Chemical and Formosa. Another major chlor-alkali producer was said by market participants to have made an announcement, but that has not been confirmed.
US contract prices for caustic soda are assessed by ICIS at $500-570/dst.
A distributor said that PPG’s announcement, at half of the other producers’, signifies that demand is not quite at the level seen by other producers.
($1 = €0.80)
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